Bitcoin has faced significant selling pressure following former President Donald Trump's unexpected announcement regarding a 50% tariff on EU imports. This development has triggered a broad market sell-off, causing Bitcoin's price to plummet from a recent high of $109,239 to a low of $106,670, marking a notable decline of $2,568 or 2.35%. The cryptocurrency market is now grappling with increased volatility as Bitcoin struggles to maintain its footing.
Following Trump's tariff warning, Bitcoin's price quickly fell from local highs near $111.3K. Despite this recent correction, institutional interest in Bitcoin remains robust. On May 22, US spot Bitcoin ETFs recorded impressive inflows of $934 million, followed closely by $608 million on May 21. This suggests that while market sentiment may be shaky, institutional confidence in Bitcoin persists.
As of now, Bitcoin has established strong volume-based resistance around $108,300. Support levels have formed in the $106,700-$107,000 range, which indicates a critical zone for traders. The recent price activity illustrated a surge from $107,373 to $107,671 between 13:06 and 13:36, followed by a sharp price reversal that emphasizes the current volatility within the crypto market.
Technical analysis indicates that Bitcoin is now trading within a compression zone, caught between two significant fair value gaps that will dictate the upcoming market direction. If Bitcoin bulls manage to reclaim the $109K to $110K area, we could see prices pushing towards resistance levels beyond $112K. Conversely, a break below the $107,000 support may test liquidity around $106K, potentially leading to further declines.
The decline accelerated notably during the hour between 22:00 and 23:00 on May 24th, with exceptionally high trading volume of 16,335 BTC, solidifying the resistance at $108,300. Support was evident in the $106,700-$107,000 range as buyers emerged during the early hours of May 25th, but recovery attempts have remained modest, with Bitcoin trading around $107,500.
Furthermore, Bitcoin's volatility was highlighted by a significant price surge from $107,373 to $107,671 within a 30-minute window, followed by a subsequent decline to $107,393 by 14:00. The most pronounced price movement occurred during the 13:35 candle, where Bitcoin surged nearly $150 amid high volume, establishing temporary resistance around $107,630.
Overall, the current technical structure suggests a short-term bearish trend for Bitcoin, with potential for further consolidation before a clearer market direction emerges. As traders navigate the implications of external factors like Trump's tariff threat and ongoing institutional interest, the focus remains on critical support and resistance levels that will shape Bitcoin's near-term price trajectory.
For those keen on keeping track of Bitcoin's price movements and market trends, subscribing to the Crypto Daybook Americas Newsletter is highly recommended. This resource provides timely updates and insights into the ever-evolving cryptocurrency landscape.
Disclaimer: Parts of this article were generated with the assistance of AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more details, please refer to CoinDesk's full AI Policy.
